VAT invoice from 2013

strikesy

Hiya,

I'm not quite sure where to go with this query. I have received a letter from a school where I used to hire a football pitch with some friends in 2013, it lasted a few months and then stopped. Today I have received an invoice for £30 with a letter stating that the school is now registered for VAT and:

'Please note, however, that our VAT registration, although only newly issued, has been backdated by HMRC and is, therefore, effective on all supplies made since 1 June 2013.

In order to correct the VAT position, please find enclosed our VAT-only invoice in respect of supplies made to you since 1 June 2013 to date, which is payable 30 working days from the date of the invoice'

Do I actually have to pay for this? It seems a little incredible I can be billed 2 years down the line for something when I was only the person collecting the money each week and organising the payment?

pinkshoes

What did the breakdown of your bills/invoices from two years ago say?

What price was it adversed at?

strikesy

I dont actually remember, I dont have any old invoices because I paid them at the time without thinking this would happen 2 years down the line!

I cant remember the exact price I paid, I called and was quoted a price for pitch hire for an hour, so thats what I paid.

bris

No your not liable. It was backdated because the school was above the VAT threshold at the time, it's their problem not yours.

strikesy

Do I contact them and tell them this? I'm worried about being chased for this money or finding out that it can go against me in future if I dont pay it

pendragon_arther

Ah, the Vatman. He is like the Gestapo of the Taxman.

strikesy

Any ideas?

JasonLVC

As Bris posted, this is not your problem.

When you made your booking in 2013 you were charged a price, which you paid. That is the contract price you agreed to. The school had failed to register for VAT in 2013 and the taxman has just found out and assessed the school for VAT on all the sales it has made since 2013.

The VAT liability belongs only to the school, they are trying to collect the VAT from you (and others) to reduce their own liability. Its worth a try from their perspective.

You don't want to just ignore the bill, so I would write (or email) to the school stating that your contract in 2013 was settled in full at that time and this new VAT only invoice is not part of the original contract and therefore you do not intend to pay it.

The school will know they cannot change the price of a contract retrospectively (basic contract law this), but they are just trying it on.


This is like having your patio laid by a builder and then 3 years later he comes knocking on your door saying he should have charged you VAT and hands you a bill.

System

As a consumer you could take the line that the price you paid included any relevant taxes. They therefore already have the VAT element but didn't record it correctly

Where goods are offered for sale they must have their price clearly indicated, and be inclusive of VAT (if the price can be seen by consumers)

See http://forums.contractoruk.com/accounting-legal/87308-client-does-not-want-pay-back-dated-vat-invoice.html although it's a contractor site the principle is exactly the same